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6 CAPITAL LEASE OBLIGATION
12 Months Ended
Feb. 29, 2016
Debt Disclosure [Abstract]  
CAPITAL LEASE OBLIGATION

NOTE 6:    CAPITAL LEASE OBLIGATIONS

 

The Company leases certain equipment under leases classified as capital leases. The leased equipment carried a cost of $50,295 and $24,295 as of February 29, 2016 and February 28, 2015, and is depreciated on a straight-line basis over 5 years. Total accumulated depreciation related to the leased equipment was $23,250 and $15,790 as of February 29, 2016 and February 28, 2015, respectively. Obligations outstanding as of February 29, 2016 and February 28, 2015 consisted of the following:

 

    February 29,     February 28,  
    2016     2015  

Capital lease for equipment requiring monthly payments of principal and

interest of $491 through October 2016 bearing interest at an annual rate of 7.5%

  $ 4,959     $ 10,311  

Capital lease for equipment requiring monthly payments of principal and

Interest of $546 through August 2020 bearing interest at an annual rate of 9.5%

    29,484       -  
Total capital lease obligations, principal and interest     34,443       10,311  
Less amount representing interest     (5,614 )     (591 )
Total capital lease obligations, principal     28,829       9,720  
  Less current portion     (9,390 )     (5,639 )
  Long term portion   $ 19,439     $ 4,081  

 

Future maturities of the capital lease obligation as of February 29, 2016 are:

 

Fiscal Year Ending      
 February 28,   Amount  
       
2017   $ 9,390  
2018     4,916  
2019     5,403  
2020     5,938  
2021     3,182  
Total   $ 28,829  

 

As of February 28, 2015, the Company had a line of credit agreement totaling $500,000, with no outstanding borrowings as of February 28, 2015.  The line expired on September 1, 2015 and was not renewed.